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PPP=Purchase Power Parity explained You are 6 times more Richer in India than in US

Have you seen ” Indian Low cost edition ” of many good International books ? often on these books it is written ” only for sale in India, Srilanka, Bangladesh etc “. Did you think why publishing houses are doing this ?

Also have you seen many Indian books where price is written as Rs 80 in India, and $80 for other countries ?

If you stay in US you will earn in Dollar and spend in Dollar. Many items such as Gold, Cars, Electronic Items ( such as LCD TV, Sony digital camera, or High end Mobile phones ) cost almost the same everywhere in the world. The price when converted to Dollar from price given in local currency,( as per official exchange rate ) comes to almost same value; give and take the duties and levies.

BUT
The cost of services, such as Barber, House maid, Tuition Teacher, Taxi hiring charges, Car Parking charges, House rent etc ( The list can be very long ) are VERY high in USA, UK, Sweden and many other ” rich ” countries. while those are much lesser in ” poor ” countries like Bangladesh, India etc.

Thus a person can do a lot ( say can have king food ) with Rs 1000 in India, but can hardly enjoy with ( 1000 / 75 ) = $13 [ as per USD to INR exchange rate of 75 Rs in October 2013 ] in USA. He can hardly do much with 10 Pounds in UK.

So surely you can guess that some averaging must be done in some way. Same ” Official ” money in pocket at different places can buy you very different amount of things.

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PPP = Purchasing Power Parity is one tool that compares the costs of goods and services of one country with another. Purchasing power parity is based on the idea that foreign exchange rates are determined by the relative prices of a similar basket of goods between 2 countries. In simple words, a Big Mac in the US should cost the same as a Big Mac in the UK once exchange rates are accounted for.
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PPP has its faults as it assumes that goods can be traded easily without regard to such things as tariffs, quotas and taxes. It is also a long term way of valuing exchange rates and does not take into consider shorter term factors.

PPP gives us context when looking at the current valuation of various currencies against the US dollar.

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There are 3 publicly available sources for purchasing power parities –
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Bloomberg’s PPP calculation using consumer prices, the Economists’ PPP calculation that compares the price of Big Macs around the world and the OECD’s PPP data. The reason why the PPP values are not consistent is because different methods of calculation and different baskets of goods used to comare prices will arrive at different PPP rates.

One of the most famous examples of PPP is the Economist’s Big Mac Index. The Big Mac PPP is the exchange rate that would leave hamburgers costing the same in the United States as elsewhere, comparing these with actual rates signals if a currency is under or overvalued. For example, consider that the exchange rate between the United States and Canada is 1.57. In the United States a Big Mac cost $2.49. In Canada, a Big Mac cost $3.33 in local Canadian dollars (CAD), which works out to only $2.12 in U.S. dollars. Therefore, in the case the exchange rate for USD/CAD is overvalued by 15 percent using this theory and should be only 1.34

3 ) OECD Purchasing Power Parity Index

A more formal index is put out by the Organization for Economic Cooperation and Development. Under a joint OECD-Eurostat PPP program, the OECD and Eurostat share the responsibility for calculating PPPs. This latest information on which currencies are under- or overvalued against the U.S. dollar can be found on the OECD’s web site at www.oecd.org. The OECD publishes a table that shows the price levels for the major industrialized countries. Each column states the number of specified monetary units needed in each of the countries listed to buy the same representative basket of consumer goods and services. In each case the representative basket costs 100 units in the country whose currency is specified. The chart that is then created compares the PPP of a currency with its actual exchange rate. The chart is updated weekly to reflect the current exchange rate. It is also updated about twice a year to reflect new estimates of PPP. The PPP estimates are taken from studies carried out by the OECD; however, they should not be taken as definitive. Different methods of calculation will arrive at different PPP rates.
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Limitations to Using Purchasing Power Parity
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PPP theory should be used only for long-term fundamental analysis. The economic forces behind PPP will eventually equalize the purchasing power of currencies. However, this can take many years. A time horizon of 5 to 10 years is typical. PPP’s major weakness is that it assumes goods can be traded easily, without regard to such things as tariffs, quotas, or taxes. For example, when the United States announces new tariffs on imports the cost of domestic manufactured goods goes up; but those increases will not be reflected in the U.S. PPP tables.

There are other factors that must also be considered when weighing PPP: inflation, interest rate differentials, economic releases/reports, asset markets, trade flows, and political developments. Indeed, PPP is just one of several theories traders should use when determining exchange rates.
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I have been tracking PPP values for India vis-a-vis US since many decades now. The value is around 1$ = 6 Rs. So a Person earning Rs 1000 ( approx ) every day [ meaning 30,000 Per month ] will have the same life style in India as a person in US will have by earning 60,000 $ per anum. Can you understand this calculation ?
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30,000 Rs = 5000 $ in India as per PPP ( Purchase Power Parity ) = 60,000 $ per Anum.
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So ideal is to earn in US or UK or say Middle east and splurge in India or Bangladesh. A person can ” enjoy ” or splurge 6 times more in India than s/he can in UK or USA.

Ans : – See the videos made by me ( in youtube search as Dezrina or “ Zookeeper Physics “ – will see all Uploaded ones. Though we have many more which have not been uploaded ). While watching the videos, take notes and try to solve the problems yourself by pausing the video. Tell me if any calculation is wrong. See the videos with 1- first then 2- and so on. Write to IAPT Kothrud, Pune office to buy ( 150 Rs approx ) the book with previous papers of NSEP ( National Standard Exam in Physics – The 1st level ), INPhO ( Indian National Physics Olympiad – 2nd level ). Prepare with these and see how much you are scoring. You can guess your ALL INDIA rank easily from NSEP, and INPhO rank. Since 1998 the IIT JEE toppers have been mostly representing India in IPhO.

2 ) Which codec and Player do I use to see the videos ?

Ans : – You can use GOM Player, or VLC Player. You have to have good speakers with filters or good earphones with filters. We have checked mostly it is OK with these. ( If you are depending only on your embedded speakers of computer /screen / keyboard then there may be extra distortions. As these speakers are often not of good Quality. Also install latest KL Codecs ) In any case reduce the volume see the board, imagine sitting in the last bench and solving the problems of your own. See if your solution differs anywhere with the scribbles on the board.

3 ) Why are you giving these ( high Quality ) lecture for free ?

Ans : Well there are lot of good things free in this world. Linux, My-SQL, Open-Office ….. Go to sourceforge and get thousands of high quality software free along with source code. Yes all officially free …. Why do you think Richard Stallman, Zimmerman, ….. etc are considered Guru philosophers ? In Punjab and Gurudwaras worldwide there are so many Langars where you get better food than Restaurants. ….. why ? Why do you have Dharmasalas and subsidized rest rooms near hospitals / Famous Temples / various places ? in Iftar party anyone can eat for free …. why ?

I am teaching since 1989 I have observed most students can do much better if they have the self motivation to solve and practice. Cheap books are available in second hand bookstalls, where you get thousands of Numericals to solve ….. but most students will like to blow their time going and coming for tuition, travel time …. TV for hours and hours watching cricket / Tennis games, playing computer games …. My free lectures are not going to make much difference in spending of unnecessary money for coaching ….. I know very well , how much people enjoy …. ! spending unnecessarily !!

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Do you know that there are NO poor / needy students in Bangalore.
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Sometime back I had tried to teach for IIT JEE FREE. Discussed with a few NGOs and social service guys. Arranged rooms but got only 1 student. We had informed many people in many ways to inform students …. We did not get students who are ready to learn for free. So I am sure these lectures are NOT FREE. If anyone learns from these, s/he changes and that’s the gain / benefit. This change ( due to learning ) is very costly …. Most do not want to learn ………..

search for videos in http://www.skmclasses.kinja.com
You will get most videos. I say most because I do not upload all videos that I make. I have many more videos which are not in the net.

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4 ) How can I get all your lectures ?

Ans : – Apart from my lectures there are approx 700 GB of PCM ( Phy, Chem, Math ) lectures. It takes approx 3 years of continuous download from scattered sources. I have ( 20,000 )Thousands of these. You can take ALL of them from me in an external 1 TB hard disk, instead of spending so much money and time again for downloading. These cover ( by Various Professors ) everything of Chemistry, Physics, Maths… Lot of this is from outside India … as foreigners have much wider heart than Indians ( as most of GNU / open source software have been developed by Non-Indians ). I observed the gaps in these videos, and thus I am solving IIT, APhO, Roorkey, IPhO Numericals. Videos made by me along with these videos gives a complete preparation.

Send me a mail at mokshya@gmail.com to contact me.

search for videos in http://www.skmclasses.kinja.com
You will get most videos. I say most because I do not upload all videos that I make. I have many more videos which are not in the net.

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5 ) How do you get benefited out of this ?

Ans :- If anyone learns we all will have better people in this world. I will have better “ YOU “.
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Ans :- We actively answers doubts at doubtpoint.
see http://skmclasses.weebly.com/doubtpoint.html
In case you appreciate our time and efforts involved in answering complicated Questions, then get Quality answers at doubtpoint.

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9 ) Why did you write an article saying there are No Poor students ?

Ans :- There are lots of NGOs and others working for rural / poor children education at lower classes. While very less effort is on for std 9 till 12. Also see the answer in question number ( 3 ) above. In more than 2 decades of teaching I never met a Poor child who was seriously interested in ( higher ) studies. As I have a mind / thinking of a ” Physicist “, I go by ” Experimental Observation “.

It is not about what is being said about poor in media / TV etc, or ” what it should be ” ( ? ) …. It is about what I see happening. Also to add ( confuse ? you more )…. You must be knowing that in several states over many years now girl students have better ( by marks as well as by pass percentage ) result in std 10 / Board Exams….. well but NEVER a girl student came FIRST in IIT JEE … why ? [ The best rank by a Girl student is mostly in 2 digits, very rarely in single digit ] ????? So ????

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10 ) How much do I have to study to make it to IIT ?

Ans :- My experience of Teaching for IIT JEE since 1989, tells me, Total 200 hours per subject ( PCM ) is sufficient. If you see my Maths and Physics videos, each subject is more than 200 hours. So if someone sees all the videos diligently, takes notes and remembers, …… Done.

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11 ) What is EAMCET ?

Ans :- Engineering Agriculture and Medicine Common Entrance Test is conducted by JNT University Hyderabad on behalf of APSCHE. This examination is the gateway for entry into various professional courses offered in Government/Private Colleges in Andhra Pradesh.

Ans : – Special Class Railway Apprentice (SCRA) exam is conducted by Union Public Service Commission (UPSC) board, for about 10 seats.That translates into an astonishing ratio of 1 selection per 10,000 applicants. The SCRA scheme was started in 1927 by the British, to select a handful of most intelligent Indians to assist them in their Railway Operations, after training at their Railway’s largest workshop, i.e. Jamalpur Workshop, and for one year in United Kingdom. The selected candidates were required to appear in the Mechanical Engineering Degree Examination held by Engineering Council (London).

Thanks for your time. To become my friend in google+ ( search me as mokshya@gmail.com and send friend request )

BBC documentary Crescent and Cross shows the 1000 years of fight between Christians and Muslims. Millions have been killed in the name of Religion. To decided whose GOD is better, and which GOD to follow. The fight continues.
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My sincere advice would be to be EXTREMELY careful ( and preferably away ) of girls. As girls age; statistically certain behavior in them has been observed. Most Male can NOT manage those behaviors… Domestic violence, divorce etc are rising very fast. Almost in all cases boys / males are HUGE loosers. Be extremely choosy ( and think from several angles ) before even talking to a girl.
🙂https://zookeepersblog.wordpress.com/save-the-male/

It is EXTREMELY unfortunate that media projects men as fools, women as superiors, Husbands as servants, and replaceable morons. In ad after ad worldwide from so many companies, similar msg to disintegrate the world is being bombarded. It is highly unacceptable misandry

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It is NOT at all funny that media shows violence against MEN. Some advertisers are trying to create a new ” Socially acceptable culture ” of slapping Men ( by modern city women ). We ( all men ) take objection to these advertisements.
We oppose this Misandry bad culture. Please share to increase awareness against Men bashing